BIR, sisingilin na ng 12% VAT ang foreign digital service providers

2 months ago

BIR, sisingilin na ng 12% VAT ang foreign digital service providers;

Foreign DSPs na nag-aalok ng edukasyon o pagsasanay na aprubado ng DepEd, CHED, at TESDA, hindi bubuwisan

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Transcript

00:00From her shoes, clothes, and make-up,

00:03Astred bought all of those from various international online shops.

00:08It's cheaper and more convenient.

00:12I have a lot of vouchers, discounts, and free shipping.

00:16But is Astred worried that the price of the products she's buying is rising?

00:21The Bureau of Internal Revenue will now issue a value-added tax,

00:25or 12% tax, to foreign digital service providers, or DSPs,

00:31to electronic marketplaces and online shops owned by baniyagas,

00:37and foreign streaming platforms like Netflix and HBO,

00:42which Adam is going crazy about.

00:44I'm super worried because I only have one subscription,

00:50and I only subscribed to three platforms.

00:52If it's x3, my expenses will be higher every month.

00:57According to an expert in BUIS,

01:00we expect that subscription fees will immediately be increased

01:06by this new digital service tax.

01:09That means additional 12%.

01:12They will only transfer it to consumers.

01:15And since they're not registered here, they're not paying income tax here,

01:19so they won't let the new law affect their operations.

01:23The BIR admitted that foreign digital service providers may be affected by the tax,

01:30but it should not be left to the consumers.

01:34It's a business decision by the service providers.

01:37But again, they're already paying from the very beginning.

01:44So they should have incorporated that concept of VAT

01:48from the very beginning during their pricing.

01:50So there could be a price increase,

01:53but again, I think it would be minimal.

01:55It's not like they'll automatically increase 12%.

01:58Also, commensurate and same rate.

02:01Foreign DSPs who earn more than P3 million will be taxed by VAT.

02:07Those who are involved in education or training

02:10accredited by the Department of Education, Commission on Higher Education, and TESDA.

02:16The BIR believes that competition will be fairer

02:20between foreign and local online businesses

02:23that have been governed by the same government for a long time.

02:27The money will go to government projects

02:31and will go back to the Filipinos.

02:33It will help in turn in funding government projects

02:38and social welfare services and infrastructure projects.

02:42So it will go back to us.

02:43This is effective on Sunday after the implementing rules and regulations were issued.

02:49The BIR will notice,

02:50fine,

02:52and block the website of foreign digital service providers

02:56who will be forced to pay value-added tax.

03:00Kalei Zalpardilla for Pambansang TV in Bagong, Philippines.

BIR, sisingilin na ng 12% VAT ang foreign digital service providers

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Transcript

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